Xiaomi’s new electric vehicle, the SU7, is now facing a steep decline in new orders across China. Once hailed as a rising star in the EV market, the SU7 is seeing a sharp shift in momentum. After a powerful launch that briefly put it ahead of Tesla’s Model 3 in China, sales are now dropping due to growing consumer backlash, safety concerns, and a credibility crisis that threatens the company’s position in the electric vehicle race. After peaking in March with a record 23,000 orders in a single week, new SU7 orders fell by 55% in April, according to Deutsche Bank analysts. In the first two weeks of May, only 13,500 orders were recorded — a significant drop compared to earlier months. The shift follows a fatal accident involving an SU7, which is currently under investigation. While the cause hasn’t been confirmed, the incident sparked intense public debate over the safety of Xiaomi’s smart driving features.

In response to the public reaction, Chinese regulators tightened rules around how automakers advertise these smart features. Though Xiaomi has remained silent publicly and did not respond to a Reuters request for comment, the damage to its reputation is already visible in the numbers.

Further controversy erupted when SU7 Ultra buyers discovered a misleading design feature. The company had offered a dual-vent carbon fiber hood as a ¥42,000 ($5,826) upgrade. But nearly 400 owners complained that the hood had no actual air ducts — contradicting claims made earlier by both Xiaomi and CEO Lei Jun.

Xiaomi issued an apology, calling it a case of “unclear communication.” However, Shanghai-based news outlet The Paper reported the issue as a “credibility crisis,” one that not only affects Xiaomi but reflects broader problems in how China’s EV industry handles consumer trust.

Some buyers have begun questioning the company’s delivery transparency. Many customers said they received their vehicles much sooner than the app’s estimates, raising suspicions that Xiaomi might be artificially inflating wait times to boost hype and demand. Delivery estimates on Xiaomi’s official app currently range from 26 weeks to 11 months, which has added to the confusion. A Chinese blogger known as A Zu, who is also an SU7 owner, even built an app to crowdsource real delivery timelines in an effort to hold the company accountable. Xiaomi has built its success in the smartphone world through flash sales, limited stock, and aggressive marketing. But cars are not smartphones. A vehicle is a major investment, and consumers expect long-term support, accurate specifications, and clear communication.

Consulting firm LandRoads explained the difference: “Consumers will have higher requirements on the brand’s capability in fulfilling promises and its long-term credibility.” That shift in consumer expectations may be catching up with Xiaomi as it ventures beyond gadgets and into the high-stakes automotive market.

Xiaomi’s CEO, Lei Jun, is a popular tech personality in China with over 26 million followers on Weibo. He’s known for his ability to connect with consumers online, but even he admitted this has been one of the most difficult periods in his career.

In a public post on Saturday, Lei acknowledged the past month had tested him deeply. But with safety concerns, misleading product descriptions, and delivery controversies piling up, Lei and his team now face the urgent challenge of rebuilding trust in the SU7 brand.

The SU7 had a strong start, even outperforming Tesla’s Model 3 in December 2024 in terms of monthly sales in China. But recent events have cast a shadow over that momentum.

As the world’s largest EV market becomes more competitive and more regulated, Xiaomi will need to address safety concerns, product transparency, and consumer trust — or risk watching its electric dreams stall out.

Due to a fatal crash, safety fears, and backlash over misleading product features.

Q2: What’s the controversy with Xiaomi SU7's carbon fiber hood?
Buyers claim it lacks promised air vents, sparking refund demands and trust issues.